California policymakers have been debating some of the deepest cuts to child care programs I have seen around the nation, and a new report says those cuts would eliminate child care subsidies for 240,000 children.

The report paints a grim picture of early learning under Gov. Arnold Schwarzenegger’s proposed budget. Besides slashing subsidies, it shows how the $1.2 billion in suggested child care cuts would hurt the industry, as well as families. For example, the equivalent of 38,000 full-time jobs in child care would be lost, the report says.

…Cutting child care would decrease employment in an already faltering job market as working parents face economic insecurity, child care providers lose jobs, and tax revenues shrink while social services costs grow. California would also lose billions of dollars in federal funding should CalWORKS be eliminated. – “Berkeley Law Center Report Takes Aim at New State Budget Proposal.” 9/7/10. (This is a summary. You can read the full report here. 

Then there is the ripple effect.

Furthermore, many more families are likely to be affected as child care providers that serve both subsidized and unsubsidized families close down, reduce staff, or scale back their programs.

The good news is these are still proposed cuts, which the state legislature voted down before adjourning its last session, and a conference committee proposed small cuts, according to Deborah Kong of Preschool California.

But, there is no final budget agreement and programs are beginning to shut down, Kong added.

Proposed cuts also can change the tone and direction of a debate, even if those cuts are rejected. As the nation’s most populous state digs itself out of a massive budget hole, we will keep track of where this debate goes.